ABSTRACT
Over the course of the financial crisis there has been an interesting mix of pessimism and optimism regarding the likelihood of a carbon crisis. This chapter takes a macro-level perspective and investigates potential options for industrial policies that are important in this context. It emphasizes two important aspects: both climate change and fossil fuel scarcity are very likely to harm the global economy; and the knowledge of renewable energy and low-carbon technologies in order to curb emissions and reduce the carbon dependency. Many countries have established climate change and energy-related regulations and policies: greenhouse gas reporting programs, regional emission trading schemes, and carbon reduction and energy efficiency programs. The chapter focuses on the creation of a global carbon-equal fund that could serve as a financing mechanism. It suggests three central ways in which the financing mechanisms of the fund could work: the foundation of local climate agencies; the implementation of sectoral approaches; and the fostering of low-carbon entrepreneurship.
